In an article for the website Money Management, Nicholas O’Donoghue argues that the Superannuation sector has been offered great clarity by the Federal Budget. Things could have got tricky had some real changes been made to the Superannuation laws but the budget categorically abstained from doing so.
White Papers review
Our relief, though, may turn out to be short-lived because the discussions of the Tax Papers are likely to force a change in the Super Taxation structure by the end of this year. For the time being, it is safe to say that retirees who were apprehensive about an avalanche of changes coming their way are breathing easy.
Superannuation supervisory levies
If we go by expert consensus there is no denying the possibility of radical changes in the tax structure. We can forget only at our own peril that the government plans to go ahead with its $46.9 million Superannuation supervisory levies; it is worth noting that the aspect about the levies that most bothers the AIST is its non-transparent nature.
You can read the original article here.
Part pension changes
The fraternity of SMSF owners feels it can focus more clearly on the long-term vision, now that the sword of regulatory changes hanging over it has been taken away. However, I feel there are a lot of potential heartaches still lying in the way. Among these, the part pension changes merit more than nominal consideration.
From 2017, the assets-free threshold for couples will rise up to $375,000 and for singles it will be $250,000. The tapering rate will shoot up to $3.00 a fortnight per $1,000 as against $1.50 presently (to be read over the asset-threshold). This change in the tapering rate is likely to hit those retiring in the next 10 or 15 years hard.
For now, our eyes need to be fixed like a laser on the White Paper reviews.